Which statement about a credit report is true?
A My credit report cannot affect my future ability
to obtain a loan.
B A credit report is always correct and doesn’t
contain any errors.
C Negative actions on a credit report generally
remain for 7-10 years.
D College grades are used in credit reports.
C Negative actions on a credit report generally remain for 7-10 years.
is this true
Yes, it is true that negative actions on a credit report, such as missed payments or collections, typically remain on the report for 7-10 years. Positive actions, such as on-time payments, can also remain on the report for several years and can help improve credit scores.
To find the correct statement about a credit report, we can analyze the given options:
A) "My credit report cannot affect my future ability to obtain a loan."
This statement is incorrect. Your credit report is one of the main factors that lenders consider when determining your creditworthiness and whether to approve you for a loan.
B) "A credit report is always correct and doesn't contain any errors."
This statement is also incorrect. While credit reporting agencies strive for accuracy, errors can occur in credit reports. It's important to review your credit report regularly and dispute any inaccuracies you find.
C) "Negative actions on a credit report generally remain for 7-10 years."
This statement is true. Negative information, such as late payments, defaults, or bankruptcies, can remain on your credit report for a specific period, typically between 7 and 10 years. Positive information, on the other hand, can remain on the report indefinitely.
D) "College grades are used in credit reports."
This statement is false. Credit reports are focused on financial information, such as your history of borrowing and repaying debts. College grades do not have any influence on your credit report.
Therefore, the correct statement is C) "Negative actions on a credit report generally remain for 7-10 years."